European stocks closed lower on Wednesday amid concern over U.S.-China trade talks, while investors monitored comments from Federal Reserve Chairman Jerome Powell.

The pan-European Stoxx 600 was down 0.2% at 406.04 during afternoon trade, dragged down by bank shares. Commerzbank was the worst performer in the sector, down 6%, while Deutsche Bank slipped over 4%.

U.S. President Donald Trump on Tuesday claimed that the initial phase of a trade deal between the world's two largest economies would be completed "soon" but offered no new details while branding China "cheaters."

Powell is addressing Congress at the start of two days of hearings following the Fed's third interest rate cut this year. In prepared remarks, he said the path of interest rates is unlikely to change as long as the economy continues to grow.

Source : CNBC